Major relief to MSME announced!
GST
Turnover Limit extended
Effective
from 1st of April, 2019
The
GST Council in its 32nd Meeting held under the Chairmanship of the Union
Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi
took the following major decisions to give relief to MSME (including Small
Traders) among others:
1: Increase in Turnover Limit for the existing Composition Scheme: The
limit of Annual Turnover in the preceding Financial Year for availing
Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special
category States would decide, within one week, about the Composition Limit in
their respective States.
1.1: Compliance Simplification: The compliance under Composition Scheme
shall be simplified as now they would need to file one Annual Return but
Payment of Taxes would remain Quarterly (along with a simple declaration).
2: Higher Exemption Threshold Limit for
Supplier of Goods:
There would be two Threshold Limits for exemption from Registration and Payment
of GST for the suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States
would have an option to decide about one of the limits within a weeks’ time.
The Threshold for Registration for Service Providers would continue to be Rs 20
lakhs and in case of Special Category States at Rs 10 lakhs.
3.
Composition Scheme for Services: A Composition
Scheme shall be made available for Suppliers of Services (or Mixed Suppliers)
with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the
preceding Financial Year up to Rs 50 lakhs.
3.1:
The said Scheme Shall be applicable to both Service Providers as well as
Suppliers of Goods and Services, who are not eligible for the presently
available Composition Scheme for Goods. 3.2: They would be liable to file one
Annual Return with Quarterly Payment of Taxes (along with a Simple
Declaration).
4: Effective date: The decisions
at Sl. No. 1 to 3 above shall be made operational from the 1st of April, 2019.
5: Free Accounting and Billing Software shall be
provided to Small Taxpayers by GSTN.
6: Matters referred to Group of
Ministers: i.
a seven Member Group of Ministers shall be constituted to examine the proposal
of giving a Composition Scheme to Boost the Residential Segment of the Real
Estate Sector. ii. A Group of Ministers shall be constituted to examine the GST
Rate Structure on Lotteries.
7.
Revenue Mobilization for Natural Calamities: GST Council
approved Levy of Cess on Intra-State Supply of Goods and Services within the
State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.
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